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10 Cards in this Set
- Front
- Back
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Scarcity |
refers to the limited nature of society's resources, given society's unlimited wants & needs |
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Economics |
is the study of how people allocate their limited resources to satisfy their nearly unlimited wants |
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Microeconomics |
is the study of the individual units that make up the economy |
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Incentives |
factors that motivate a person to act or exert effort |
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Opportunity Cost |
highest-value alternative that must be sacrificed in order to get something else |
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Economic Thinking |
requires a purposeful evaluation of the available opportunities to make the best decision possible |
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Marginal Thinking |
require decision-makers to evaluate whether the benefit of one more unit of something is greater than its cost |
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Markets |
bring buyers and sellers together to exchange goods and services |
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Trade |
voluntary exchange of goods and services between two or more parties |
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Comparative Advantage |
refers to the situation where an individual, business, or country can produce at a lower opportunity cost than a competitor can |
